Oil & Gas Supply Chain

Shell Oil Company

Study Case

Team :
Amina Tayouba
Hajer Ben Tahar
Houssem Ouhaichi
Ahlem Ben Abdallah
 1 OIL AND GAS SUPPLY CHAIN
Standard Model and stakeholders

2 OPERATIONS FLOWS
Physical and infomations flows
Reverse Business flow

Presentation Agenda 3 CASE STUDY : SHELL OIL COMPANY

Company Overview
Shell Supply Chain presentation

4 GREEN SUPPLY CHAIN

CONCLUSION
5 Strategic orientation of Hydrocarbon SCMn

1
HYDROCARBONS SUPPLY CHAIN

2
HYDROCARBONS SUPPLY CHAIN

Upstream Midstream Downstream

Exploration Processing Refine
Production Transportation FeedStocks
3
Storage Point of Sal
OPERATIONS FLOW
Informations Flow

Oil and gas supply chain information flow is dealing with the offer and the demand information in each supply phase.
The demand forecast is collected in order to build the capacity and resources planning.

MANUFACTURING &
TRANSPORT
REFINE
01 Transportation Cost
03 Product Mix demand
05
Transport route Demand evolution and
Transport lead time variability
Transport Plan Product offer velocity
Refine Production Plan

STORAGE RETAIL &

PRODUCTION
POINT OF SALE
Explore energy resources 02 Storage Capacity
04 Demand Forecast
Production capacity availability
Seasonality
Production cost Strategic reserve
Geaographic
regulatory reserve
Strategic sourcing plan distribution
Storage Plan
Demand Plan Transportation and
Production Plan distribution capacity
4
plan
OPERATIONS FLOW
Reverse Flow

Reverse Process in Oil and Gas supply Chain management is supporting the main product stream in order to
maximise the value creation in each supply phase

MANUFACTURING
TRANSPORT & REFINE
01 backup transportation for 03 Petrochimical
05
pipline and Tankers
industries

RETAIL &
PRODUCTION STORAGE
POINT OF SALE
Polytane and CO2
coproduction
02 Tankers storage
04 Lubricant Oil
reuse
Drainage

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CASE STUDY: SHELL OIL COMPANY
Company Overview

Royal Dutch Shell Plc popular by the name Shell :

Anglo-Dutch multinational company, head-quarters in Netherlands and is incorporated in UK.

Listed as a respected and known company. It topped in the list of Fortune Global 500 list of companies in 2013
(CNN. 2012).

active in various areas of oil and gas indus-try.

Setups in around more than 70 countries around the world

Operates on two businesses segments-upstream and downstream.

Its strategy is “More Upstream, Profitable Downstream,”by using the latest technology and
innovation for sustainable development that delivers growth for shareholders

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CASE STUDY: SHELL OIL COMPANY
Stakeholders

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CASE STUDY: SHELL OIL COMPANY
Supply chain
Exploration
1. Exploring for oil and gas onshore and
offshore
Development and extraction
2. Developing onshore and offshore fields
3. Producing conventional, deep-water and
shale oil and gas
4. Capturing carbon dioxide and storing it
safely underground
5. Extracting bitumen
Manufacturing and energy production
6. Upgrading bitumen
7. Refining oil into fuels and lubricants
8. Producing gas-to-liquids (GTL) products
9. Producing petrochemicals
10. Producing biofuels
11. Generating renewable power
12. Producing liquefied natural gas (LNG)
Transport and trading
13. Shipping gas to where it is needed
14. Shipping oil to where it is needed
15. Trading oil and gas
16. Supply and distribution of LNG for
transport application
17. Regasifying LNG
18. Trading power
Sales and marketing
19. Supplying domestic electricity
20. Supplying products to businesses,
including gas for cooking, heating and
electrical power
21. Progressing electric vehicle and
hydrogen refuelling infrastructure
22. Providing mobility solutions for
customers, including fuels and lubricants
23. Supplying aviation fuel
Technical and business services
24. Researching and developing new
technology solutions
25. Managing the delivery of major
projects
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SHELL GREEN TRANSITON FRAMEWORK
Internal Perspective

Powering Progress is Shell’s strategy to accelerate the transition of business to net-zero emissions. Designed to create value for
shareholders, customers and wider society, it has four main goals:

ACHIEVING POWERING RESPECTING GENERATING

NET-ZERO LIVES NATURE SHAREHOLDER
EMISSIONS VALUE

Powering lives Protecting the Growing value

Working with
through products and environment, through a dynamic
customers and across
activities, and by reducing waste and portfolio and
sectors to accelerate
supporting an making a positive disciplined capital
the transition to net-
inclusive society contribution to allocation
zero emissions
biodiversity

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SHELL GREEN TRANSITON FRAMEWORK
External drivers

COST CONTROL PLANNING AND RISK

Supply Chain management helps in
MANAGEMENT
0 delivering goods on time but due to 0 Main sources of oil supply chain risk and
increasing businesses within the vulnerabilities represented in: Exploration
1 countries and increasing globalization, 2 and Production Risks, Environmental and
It is becoming difficult to deliver on Regulatory Compliance Risk, Geopolitical
time. Risk, Transportation Risk.

SUPPLIERS/OWNERS
GLOBALIZATION
RELATIONSHIP MANAGEMENT
The Global transition in the energy sector
0 Shell is known globally and has operations 0 has driven Oil and Gas companies around th
all around the world. Diverse rule within
3 different countries make it difficult to
4 world to rethink their value proposition and
adopt a new environmentally sustainable
measure the quality and this can create a
business
conflict between owners and suppliers
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SHELL GREEN TRANSITON FRAMEWORK
Practices

Shell start sbuilding Europe’s Shell is part of the Raízen joint Restoring Coral Reef in
largest renewable hydrogen venture in Brazil, producing Mexico
plant sugar-cane ethanol

Shell pledges financial ScotWind: Shell and Shell works in partnership to

support to bio-crude project ScottishPower confirm £75 install hybrid micro-grids in
in Norway million supply chain funds Malaysia
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SHELL GREEN TRANSITON FRAMEWORK
Metrics

To set short-term carbon

To limit the rise in average Reduce absolute emissions intensity targets
01 global temperature to 02 by 50% covers emissions 03
03 by 3-4% by 2022
1.5°Celsius. from operations. by 6-8% by 2023
by 9-12% by 2024

Avoid emissions, by adopting

emissions-free solutions
Medium- and long-term

carbon intensity targets:

Reduce emissions by making use of
05 by 20% by 2030 04
lower-carbon fuels and technologies
by 45% by 2035

by 100% by 2050
Compensate remaining emissions
through carbon credits

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CONCLUSION
Optimising value in the Oil and Gas Industy Supply Chain

Supply chains of Oil and Gas Industries may be organizationally designed to be managed in many ways.The
description provides grounds for considering this form of logistics as a complex system.

Currently, it is managed following long-linked technology as a coordination problem with different stepwise
managed activities. Each operation is described in detail through plans, but their initiation and finishing time is
emergent.

The reverse logistics in Oil and Gas industries has gained its importance because of the cost contrainst and the
wastes volume generated within the classic methodes.

Rarity and limitation of the natural substances with the rising demand push the Oil and Gas industries to reinvent
themselves and offer a new value proposition through the renewable energy development.

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 Thank You
for your attention